XI'AN, China, Nov. 16 /PRNewswire-Asia-FirstCall/ -- SkyPeople
Fruit Juice, Inc. (NYSE Amex: SPU) ("SkyPeople" or "the Company"),
a leading processor and manufacturer of concentrated apple,
kiwifruit, pear and other fruit juices and fruit products in the
People's Republic of China, today announced financial results for
the third quarter ended September 30, 2009. Third Quarter 2009 and
Recent Highlights -- Revenue increased 67.1% year-over-year to
$10.6 million. -- Operating expenses decreased 30.9% year-over-year
to $1.0 million. -- Income from operations increased 76.8%
year-over-year to $2.9 million. -- Net income increased 75.8%
year-over-year to $2.1 million or $0.11 per diluted share. -- New
Vegetable and Fresh Fruits Division established to promote the
sales of fresh kiwifruit in the Chinese domestic market. -- The
Company's common stock, which previously traded on the OTC Bulletin
Board, began trading on the NYSE Amex on October 29, 2009. -- In
November, the Company completed a public offering by two selling
stockholders of the Company's common stock. In connection with the
offering, the selling stockholders exercised warrants to purchase
an aggregate of 2.7 million shares of the Company's common stock.
The Company will receive approximately $6.9 million in gross
proceeds from the exercise of these warrants during the current
quarter. Management's Commentary "Our strong third quarter
financial results prove the potential of our business for solid
sales growth and enhanced profitability," said Mr. Yongke Xue,
Chief Executive Officer of SkyPeople. "Demand for fresh kiwifruit,
fruit beverages and fruit vinegar beverages has accelerated
substantially in the Chinese market due in part to moderate overall
improvement in the Chinese economy and bolstered by the growing
adoption of healthier lifestyles. Our sales growth shows that we
are playing an important role in China's fruit juice market and
building awareness for our innovative products. To further
capitalize on this market momentum, we recently launched a new
vegetable and fresh fruits division to promote our leading fresh
kiwifruit products. Sale of fresh kiwifruit counted for 28% of
total sales for the third quarter. In addition to solid growth in
sales of fruit beverages and fresh kiwifruit, third quarter sales
of apple related products increased by 184% year-over-year. Apple
juice demand has accelerated sharply since the weak year-ago
squeezing season, which was substantially impacted by the
instability of the global economy. To capture the renewed strength
of the apple market, we began the production of concentrated apple
juice in August 2009 and have already reached full capacity. "We
successfully reduced our general and administrative expenses to
just 5% of total revenue, from 11% in the year-ago-period, due to
our prudent controls on spending. We are equally pleased with our
bottom line performance for the third quarter. "Our cash position
will be bolstered during the current quarter as a result of the
offering completed earlier this month. This, plus our NYSE Amex
listing, gives us better visibility among customers and investors
in the U.S. and will be instrumental as we move forward with our
development plans in each of the markets we serve. We will continue
to leverage our unique production processes and technologies and
leadership in specialty juices to meet growing consumer demand in
China and further penetrate the high-growth pure juice beverage
international markets," Mr. Xue concluded. Third Quarter 2009
Results Revenue for the third quarter of 2009 increased 67.1%
year-over-year to $10.6 million, compared to $6.3 million in the
third quarter of 2008. This increase was primarily associated with
sales of fresh kiwifruit, fruit beverages and fruit vinegar
beverages in China. A new Vegetable and Fresh Fruits Division was
established by the Company in July 2009 to promote the sales of
fresh kiwifruit in the Chinese domestic market. Sales of fresh
kiwifruit in the three months ended September 30, 2009 were $2.9
million; there were no comparable sales of fresh kiwifruit in the
year-ago period. In addition to new fresh kiwifruit sales, the
Company generated sales growth of 17.8% in sales of fruit beverages
and 184.1% in sales of concentrated apple juice and apple aroma
products. This growth was partially offset by a modest
year-over-year decrease of 2.6% in sales of concentrated pear juice
and a year-over-year decrease of 26.2% in sales of concentrated
kiwifruit juice and kiwifruit puree. The Company reported gross
profit of $3.9 million for the third quarter of 2009, compared with
$3.0 million for the third quarter of 2008. Gross margin as a
percent of revenue for the third quarter of 2009 was 36.3%,
compared with 47.8% in the comparable 2008 period. The decrease in
gross margin as a percentage of revenue in the third quarter of
fiscal 2009 was primarily due to a decrease in the selling price of
concentrated juice products in the international market in the
current squeezing season, which began in July (and is typical
during the summer season). Due to heavy competition in the
concentrated juice market and the instability of the financial
markets and their influence on the global economy, the price of
concentrated juice in the international market continued to
decrease in the third quarter of fiscal 2009. Operating expenses
decreased 30.9% to $1.0 million in the third quarter of 2009,
compared with $1.4 million in the third quarter of 2008. The
decrease in operating expenses in the third quarter of fiscal 2009
was mainly due to a decrease in general and administrative
expenses, selling expenses, and accrued liquidated damages,
partially offset by an increase in research and development
expenses. Income from operations increased 76.8% to $2.9 million
for the third quarter of 2009, from $1.6 million for the third
quarter of 2008. Provision from income taxes was $783,000 for the
third quarter of 2009, compared with $214,000 for the third quarter
of 2008. The increase in tax provision was due to an increase in
income before income tax and an increase in the effective tax rate
of Shaanxi Tianren. (SkyPeople Fruit Juice, Inc. is the holding
company for Shaanxi Tianren Organic Food Co., Ltd.). Shaanxi
Tianren was awarded the status of a nationally recognized High and
New Technology Enterprise in December 2006, which entitled Shaanxi
Tianren to tax- free treatment for two years starting from 2007.
Starting in 2009, Shaanxi Tianren became subject to the regular tax
rate of 25% according to the new tax law in China, which was
effective on January 1, 2008. Net income increased 75.8%
year-over-year to $2.1 million, or $0.11 per diluted share, for the
third quarter of 2009, compared to net income of $1.2 million, or
$0.06 per basic and diluted share, for the third quarter of 2008.
Balance Sheet Highlights As of September 30, 2009, cash and cash
equivalents totaled $12.3 million, working capital was $17.6
million and stockholders' equity was $46.2 million. Subsequent
Event On November 3, 2009, the Company completed a previously
announced public offering of shares of Common Stock that were
issued upon exercise of warrants pursuant to an exchange agreement
dated May 28, 2009. The Company received approximately $6.9 million
in gross proceeds from the exercise of all of the foregoing
warrants. The Company intends to use the net proceeds to fund
potential acquisitions and for general corporate purposes,
including acquisitions and other expansion of its current
production capacity. About SkyPeople Fruit Juice, Inc. SkyPeople
Fruit Juice, Inc. is a holding company for Shaanxi Tianren. Shaanxi
Tianren is a company organized according to the laws of the
People's Republic of China. SkyPeople's main products are
concentrated apple, kiwifruit, pear and other fruit juices for
domestic and international consumers. Its brand, HEDETANG, is
positioned as a high quality, healthy and nutritious juice
concentrate and clear juice product used both as an ingredient
component in other products and an end-use juice concentrate
product. Shaanxi Tianren utilizes the largest kiwifruit plantation
in China and is a leading worldwide producer of concentrated
kiwifruit juice. For more information, please visit
http://www.skypeoplefruitjuice.com/ . Forward-Looking Statements
This press release contains certain "forward-looking statements"
that involve a number of risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and the
actual results and future events could differ materially from
management's current expectations. Such factors include, but are
not limited to, the Company's ability to obtain the necessary
financing to continue and expand operations, to market its products
in new markets and to offer products at competitive pricing, to
attract and retain management, and to integrate and maintain
technical information and management information systems, political
and economic factors in the People's Republic of China, compliance
requirement of laws and regulations of the PRC, the effects of
currency policies and fluctuations, general economic conditions and
other factors detailed from time to time in the Company's filings
with the United States Securities and Exchange Commission and other
regulatory authorities. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. For
more information, please contact: SkyPeople Fruit Juice, Inc. Ms.
Spring Liu, CFO Tel: +1-818-390-1272 Email: The Piacente Group,
Inc. Kristen McNally Tel: +1-212-481-2050 Email: Financial tables
to follow SKYPEOPLE FRUIT JUICE, INC. UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS, (AMOUNTS EXPRESSED IN US DOLLAR)
September 30, December 31, 2009 2008 ASSETS (Unaudited) CURRENT
ASSETS Cash and equivalents $12,320,597 $15,274,171 Accounts
receivable 14,905,880 11,610,506 Other receivables 1,448,234
297,394 Inventories 3,768,088 1,844,397 Prepaid expenses and other
current assets 859,620 1,087,076 Total current assets 33,302,419
30,113,544 PROPERTY, PLANT AND EQUIPMENT, Net 19,321,792 20,406,967
LAND USAGE RIGHTS 6,275,908 6,404,771 OTHER ASSETS 5,053,049
2,362,049 TOTAL ASSETS $63,953,168 $59,287,331 LIABILITIES AND
EQUITY CURRENT LIABILITIES Accounts payable $1,126,080 $663,092
Accrued expenses 735,715 1,657,437 Accrued liquidated damages --
254,301 Related party payables -- 23,452 Income taxes payable
783,022 1,450,433 Advances from customers 1,781,699 1,375,460
Short-term notes payable 11,280,068 11,256,871 Total current
liabilities 15,706,584 16,681,046 TOTAL LIABILITIES 15,706,584
16,681,046 EQUITY SkyPeople Fruit Juice, Inc. stockholders' equity:
Preferred Stock, $0.001 par value; 10,000,000 shares authorized;
3,448,480 Series B Preferred Stock issued and outstanding as of
September 30, 2009 and December 31, 2008, respectively 3,448 3,448
Common Stock, $0.001 par value; 66,666,666 shares authorized;
14,847,857 shares issued and outstanding as of September 30, 2009
and December 31, 2008, respectively 14,848 14,848 Additional
paid-in capital 14,253,894 13,999,593 Accumulated retained earnings
27,465,404 22,468,934 Accumulated other comprehensive income
4,462,381 4,573,143 Total SkyPeople Fruit Juice, Inc. stockholders'
equity 46,199,975 41,059,966 Noncontrolling interests 2,046,609
1,546,319 TOTAL EQUITY 48,246,584 42,606,285 TOTAL LIABILITIES AND
EQUITY $63,953,168 $59,287,331 SKYPEOPLE FRUIT JUICE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME, (AMOUNTS EXPRESSED IN US DOLLAR) Three Months
Ended Nine Months Ended September 30, September 30, September 30,
September 30, 2009 2008 2009 2008 (Unaudited) (Unaudited)
(Unaudited) (Unaudited) Revenue $10,604,655 $6,345,778 $23,472,717
$22,442,329 Cost of Sales 6,753,327 3,315,431 14,773,081 14,635,767
Gross Profit 3,851,328 3,030,347 8,699,636 7,806,562 Operating
Expenses General and administrative 501,831 702,385 1,469,128
1,409,895 Selling expenses 188,426 311,931 563,548 808,576 Research
and development 275,571 175,431 827,363 199,056 Accrued liquidated
damages -- 208,658 -- 208,658 Total operating expenses 965,828
1,398,405 2,860,039 2,626,185 Income from Operations 2,885,500
1,631,942 5,839,597 5,180,377 Other Income (Expense) Interest
expense (191,717) (179,699) (677,375) (624,802) Interest income
15,371 18,377 54,404 41,342 Subsidy income 4,661 3,428 1,557,340
52,206 Other income (expense) 334,058 (1,119) 691,935 32,827 Total
other income (expense) 162,373 (159,013) 1,626,304 (498,427) Income
Before Income Taxes 3,047,873 1,472,929 7,465,901 4,681,950 Income
Tax Provision 782,660 214,387 1,998,227 525,585 Net Income
2,265,213 1,258,542 5,467,674 4,156,365 Less: Net income
attributable to noncontrolling interests 181,292 73,459 471,204
256,242 NET INCOME ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC.
$2,083,921 $1,185,083 $4,996,470 $3,900,123 Earnings Per Share:
Basic earnings per share $0.12 $0.06 $0.28 $0.22 Diluted earnings
per share $0.11 $0.06 $0.25 $0.21 Weighted Average Shares
Outstanding: Basic 14,847,789 14,847,789 14,847,789 14,810,966
Diluted 18,502,518 18,480,109 19,633,360 18,151,026 Comprehensive
Income: Net income $2,265,213 $1,258,542 $5,467,674 $4,156,365
Foreign currency translation adjustment 28,268 414,475 (81,676)
1,711,288 Comprehensive Income $2,293,481 $1,673,017 $5,389,998
$5,867,653 Comprehensive income attributable to the noncontrolling
interest (181,246) (69,863) (500,290) 53,654 Comprehensive Income
Attributable to SkyPeople Fruit Juice, Inc. $2,112,235 $1,603,154
$4,885,708 $5,921,307 SKYPEOPLE FRUIT JUICE, INC. AND SUBSIDIARIES
UNAUDITED_CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, (AMOUNTS
EXPRESSED IN US DOLLAR) September 30, September 30, 2009 2008
(Unaudited) (Unaudited) Cash Flow from Operating Activities Net
income $4,996,470 $3,900,123 Adjustments to reconcile net income to
net cash flow (used in) provided by operating activities Bad debt
expenses 1,130 -- Depreciation and amortization 1,488,748 1,409,907
Loss on sale of property, plant and equipment -- 1,274 Earnings
attributable to noncontrolling interests 471,204 256,242 Changes in
operating assets and liabilities, net of acquisition effects
Accounts receivable (3,300,512) 6,030,436 Other receivables
(1,150,327) 13,759 Prepaid expenses and other current assets
(2,463,972) (1,224,295) Inventories (1,923,564) 2,847,423 Accounts
payable 244,392 (1,662,730) Accrued expenses and other current
liabilities 322,711 114,013 Accrued liquidated damages -- 208,658
Advances from customers 406,746 17,425 Taxes payable (1,427,024)
90,920 Net cash (used in) provided by operating activities
(2,333,998) 12,003,155 Cash Flow from Investing Activities
Prepayment for lease improvement -- (356,860) Deposits to purchase
target company -- (2,141,158) Loan repayment from related parties
-- 5,475,092 Loan advanced to related parties -- (7,179,883)
Additions to property, plant and equipment (289,945) (2,826,179)
Proceeds from sale of property, plant and equipment -- 4,996 Net
cash used in investing activities (289,945) (7,023,992) Cash Flow
from Financing Activities Proceeds from stock issuance -- 3,115,072
Proceeds from bank loans 9,516,559 14,988,105 Repayment of bank
loans (9,487,277) (14,531,324) Dividend paid to non-controlling
interest -- (309,896) Repayments of related party loan -- (149,486)
Net cash provided by financing activities 29,282 3,112,471 Effect
of Changes in Exchange Rate (358,913) 610,687 NET (DECREASE)
INCREASE IN CASH (2,953,574) 8,702,321 CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 15,274,171 4,094,238 CASH AND CASH EQUIVALENTS,
END OF PERIOD $12,320,597 $12,796,559 Supplementary Information of
Cash Flows Cash paid for interest $677,446 $649,327 Cash paid for
taxes $2,664,330 $1,049,534 Purchase of Huludao, offset by related
party receivables $-- $6,887,391 DATASOURCE: SkyPeople Fruit Juice,
Inc. CONTACT: SkyPeople Fruit Juice, Inc., Ms. Spring Liu, CFO,
+1-818-390- 1272, or ; The Piacente Group, Inc., Kristen McNally,
+1-212-481-2050, or Web site: http://www.skypeoplefruitjuice.com/
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